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Wai-Yee Chen

I am an Investment Author who write based on my everyday experiences as an Investment Adviser.
I observe how my clients decide when I propose investment ideas to them. I observe why some clients make money while others don't, though advice from me had been the same.
I observe how stock markets move, how humans behave and the effect of emotions, behaviour, decisions, ego and intellect, the human condition really, drive the pillar of modern society, money.
Having been investing, learning, observing, researching and thinking about money and how people relate to it in the later years of my almost twenty year career, I have come to believe, its not just knowledge, skills nor techniques. It's not even about how much capital one has or don't or the advice that one gets. It comes down to WHO one is, HOW one thinks, feels and acts when faced with the decisions of money.
This is what I am about, YOU and Money. Investing AND psychology.
But I don't (and can't afford to) just write and talk, I help YOU invest. This is what I do everyday. Writing and talking only comes in when there is any time left...
Don't hesitate to contact me at wchen@ords.com.au to find out how we can work together in your investments. I would like to hear from you.

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November 2018

General Disclaimer

Dear Investors,
Investments ideas and strategies mentioned in this forum are of a general nature and they don’t constitute personal advice. No personal situations and needs have been considered. It may be best for you to speak with an accredited options adviser before embarking on any of these strategies.
Strategies, ideas and opinions are views of my own and do not necessarily represent that of my company, Ord Minnett Limited.
The law requires me to add that some or all of the investment strategies and ideas in this forum may be those advised to my clients. Hence I do earn commissions and/or fees on the advisory and execution of these strategies.

View: more uncertainties and volatilities to be played out in the market in July – Greece, China, US reporting

Expecting a potential plus and minus 100 range on the S&P/ASX 200 Index (XJO) from the 4500 level now.

Options Strategy:

Buy July 4250 put for 25 points (which is $250 after a $10 multiplier)

and

Sell July 4650 call for 27 points ($270 per contract)

for a total credit of $20 per contract (before costs)

How to profit?

1 Profit most if XJO index falls below 4250, where the put option will then be in the money and be very profitably moving 1 for 1 with the put option

2 failing that, with a delta of 0.13 on the put, with other variables (like time and volatility constant), a 100 point drop on the index will give a $130 profit per contract (after receiving $20 to be in the trade!)

Put option bought can be sold to take profit independently anytime during term of options

3 If XJO index stays belo 4650, the call sold will expire worthless and the whole $270 per contract will be earned.

The bet in this strategy is that the Index does not go beyond 4650 in the next 27 days, if it does, the call needs to be bought back to cut loss.